An export subsidy by an exporting country will: A. Help producers of the exporting country but lower the overall economic welfare of the exporting country. B. Help consumers of the exporting country and raise the overall economic welfare of the exporting country. C. Hurt producers of the exporting country but raise the overall economic welfare of the exporting country. D. Hurt consumers of the exporting country and lower the overall economic welfare of the importing country. E. Not affect consumers of the exporting country but raise the overall economic welfare of the importing country. Which of the following statements is TRUE? A. The Heckscher-Ohlin trade model does not offer an explanation of the pattern of trade. B. The Heckscher-Ohlin trade model does not offer an explanation of the gains from trade. C. The Heckscher-Ohlin model offers a reasonable explanation of the pattern of trade and the gains from trade. D. The Ricardian trade model (with labor as the only input) offers a better explanation of the pattern of trade and the gains from trade than the Heckscher-Dhlin model. E. None of the above. The Country of Ascalonia is blessed with rich silver deposits. The cost of silver produced (relative to the cost of geld produced) is therefore very low. From this information we know that A. Ascalonia should import silver and export gold. B. Ascalonia should export both gold and silver. C. Ascalonia should invest in more gold production. D. Ascalonia may or may not have a comparative advantage in silver. E. Ascalonia has a comparative advantage in silver. In the Ricardian model, the marginal product of labor: A. rst rises, then falls, as more labor is employed to produce a good. B. rst falls, then rises, as more labor is employed to produce a good. C. continuously falls, as more labor is employed to produce a good. D. continuously rises, as more labor is employed to produce a good. E. does not change, as more labor is employed to produce a good